Petrol prices at the pump rise despite FALLING wholesale oil costs

Motorists have actually paid MORE as suppliers have enjoyed a 4p drop in fuel prices per litre

By PAUL HARPER

11th November 2016, 3:58 pm

Updated: 12th November 2016, 2:55 pm

PETROL retailers should be slashing prices at pumps to reflect falling oil prices and a steadying pound, says the RAC.

Wholesale prices have dropped by 4p since October 26, according to the motoring group.

Getty

Prices of unleaded and diesel fuels have increased marginally despite a rise in petrol prices said the RAC

This graph shows the drop in wholesale and pump fuel prices over the past two and a half weeks

But the RAC revealed during this period the average price of petrol (114p) and diesel (116p) increased slightly to around a third of a penny.

Now it has urged the big suppliers to cut at least 3p of both fuels.

Price-competitive retailers including supermarkets could be selling petrol for around 110p a litre and diesel for 112.5p, it added.

Its fuel spokesman Simon Williams said: “Fears are looming that OPEC’s planned production cut, due to be agreed at the end of November, won’t come to fruition and consequently won’t stem the over-production of oil that has kept prices low.

"The effect of that has been a short, sharp fall in the oil price, down from more than $50 a fortnight ago to around $43 now.

"This, combined with a rallying pound following last week’s High Court case on Brexit and the result of the US election, is causing wholesale prices to fall – which should be good news for motorists.

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“Consequently, we are now looking to retailers to cut their forecourt prices and save drivers money when they next fill up.

"We are very surprised retailers haven’t reduced their forecourt prices in the last week as they have a good recent record of passing on wholesale price savings at the pump.

"However, this current unwillingness to cut will not help their cause in getting motorists to believe that forecourt prices don’t go up like a rocket when wholesale prices rise and fall like a feather when they’re coming down.

“A logical conclusion is that retailers are taking advantage of the current climate which has led people to think that higher fuel prices are an inevitability simply because of the weaker pound and talk of the rising cost of goods.

"A petrol and diesel cut by retailers now will send the right message to consumers that they can still benefit when wholesale fuel prices fall as they have done in recent days.”

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